Abstract
The production inventory routing problem is an integrated supply chain planning problem where the decisions concerning production, inventory and routing are simultaneously determined. We present an extended production inventory routing model dealing with the perishable food where the quality is explicitly formulated. We adapt a two phase iterative approach to solve the propose model. The model is first decomposed into two sub-problems and solved sequentially, then an iterative procedure is applied to remedy the flaw of the decomposition method. The computational results on randomly generated instances with up to 50 retailers show that we can obtain good quality solutions within acceptable time.
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